document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=605895>Question 605895</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If a business borrows $20,000 and repays $33,500 in 5 years, what is the simple interest rate?<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #381845 by </B><A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><B>jim_thompson5910(35256)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=381845\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The amount of interest alone is 33500 - 20000 = 13500\r<BR>\n" );
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document.write( "So I = 13500\r<BR>\n" );
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document.write( "The principle is $20,000, so P = 20000\r<BR>\n" );
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document.write( "The time of the loan is 5 years, so t = 5\r<BR>\n" );
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document.write( "Plug all this into I = Prt and solve for r\r<BR>\n" );
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document.write( "I = Prt\r<BR>\n" );
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document.write( "13500 = 20000*r*5\r<BR>\n" );
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document.write( "13500 = 20000*5*r\r<BR>\n" );
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document.write( "13500 = 100000r\r<BR>\n" );
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document.write( "13500/100000 = r\r<BR>\n" );
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document.write( "0.135 = r\r<BR>\n" );
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document.write( "r = 0.135\r<BR>\n" );
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document.write( "So the simple interest rate is <font color=\"red\">13.5%</font>. </SPAN>\n" );
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